The Globe and Mail reports in its Wednesday edition that BMO and Scotiabank delivered better-than-expected financial performance as their leaders sounded a note of cautious optimism about the economy's prospects. The Globe's Andrew Willis and Dayne Patterson write that on Tuesday, the two banks kicked off reporting of results for the quarter that ended July 31 with profits that exceeded expectations and lower-than-expected loan loss provisions. Executives at the two lenders struck a more upbeat tone than in previous quarters, when the prospect of trade war translated into increased reserves for bad loans. Darryl White, chief executive officer at BMO, said the business uncertainty created by U.S. President Donald Trump's tariff policies has receded in recent months. He said ahead of the potential renegotiation of the trade pact between Canada, the United States and Mexico next year that "the economy is proceeding as expected, neither robust nor recessionary." At Scotiabank, chief risk officer Phil Thomas said: "If I look at where we are now versus where we were last quarter: some big improvements, particularly on the retail side. I'm encouraged by the trends; however I don't think the worst has necessarily passed us."